Investing.com - Financial Markets Worldwide
👀 Ones to watch: The MOST undervalued stocks to buy right nowSee Undervalued Stocks

Forex - EUR/USD mostly flat on Spanish auction anticipation

Published 04/18/2012, 12:15 PM
Updated 04/18/2012, 12:16 PM
EUR/USD
-
EUR/GBP
-
EUR/JPY
-

Investing.com - The euro traded mostly flat against the U.S. dollar Wednesday, although it has bounced from the lows, as debt crisis fears in the euro zone dominated market sentiment prior to Thursday’s Spanish debt auction.

EUR/USD traded at 1.3124 slipping just 0.02% in U.S. afternoon trade after bouncing from a low of 1.3059 earlier in the day.

The pair was likely to find support at 1.2994, Monday’s low and a two-month low and resistance at 1.3140, the session high.

The single currency weakened prior to Thursday’s critical auction of two and 10-year Spanish government bonds, amid uncertainty over whether the government will be able to reduce one of the euro zone’s largest budget deficits in the face of a looming recession.

Market sentiment was boosted on Tuesday after an auction of short-term Spanish government debt raised the full targeted amount of EUR3 billion, but the country’s borrowing costs almost doubled.

Meanwhile, concerns over Spain’s troubled banking sector mounted after the country’s central bank reported that the amount of bad loans at domestic banks rose to an 18-year high in February.

Pressure on the euro continued as  concerns over Portugal’s economic health intensified after Prime Minister Pedro Passos Coelho stated Wednesday there were "no guarantees" that the country would meet its commitment to return to the international capital markets before September 2013.

The euro was hovering close to a 19-month low against the stronger pound, with EUR/GBP tumbling 0.65% to hit 0.8190 but held gains against the  yen, with EUR/JPY up 0.53% to hit 106.68.

In other news, Germany auctioned EUR4.21 billion of two-year government bonds at a record low yield of 0.14%, as investor demand for safe haven assets remained well supported.




Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.